Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. Learn how it is calculated and when to use it.

The discount factor of a company is the rate of return that a capital expenditure project must meet to be accepted. It is used to calculate the net present value of future cash flows from a project ...

Learn how to calculate the present value of an annuity. Discover key formulas, understand discount rates, and explore examples for better financial decisions.

Discounting a future cash flow expresses future returns in today's dollars. This allows a fair comparison between initial business expenses and your expected or realized returns. As an example, you ...

Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors. While the dividend discount model is often cited, I noticed there aren only a few examples on the web about how ...

Treasury bills are secure, backed by U.S. government, with maturity terms from 4 weeks to 1 year. Pricing of T-bills uses a discount formula: [(days to maturity * interest rate) / 360]. Buy T-bills at ...

When you apply for a mortgage, your lender will probably quote you an interest rate -- say, 4.5%. The problem with the interest rate is that is doesn't usually reflect the true cost of borrowing money ...